Why are auctions on Teletrade so ridiculously inflated?

[onlykeydates4me-migration]

Do they allow the seller to shill their own auctions on that site? I have noticed that coins really go for alot more than their true market value on that site but not so much on Heritage. I won a few coins on Teletrade that i bid on out of impulse w/o doing the research that i typically do, and realized that i paid as much as 15% more in a couple cases. I know, im a fool for not doing the reaearch but im sure that we all got caught up in the moment during some auction and overpaid, but it seems like EVERY auction on Teletrade goes for more than it's worth. What's your take?

[JCM-Houston]

I'm partially in agreement with you here. I've been able to buy 4 coins on Teletrade in the past couple of months, out of a few dozen I bid on. I was very pleased with the ones I won, but they are generally one or two grades below what an "investor" wants to buy and that may be the key. These were all real lookers for the grade, but the ones I've bid on in the top grades I never seem to win.

1893 Columbian MS64

1937 Texas MS65

1925 Stone Mt. MS66

1913 25c PF62

 

Meanwhile, at Heritage I think I've bought about 7-8 in the same time period, and most of them are higher grade. (eg 1936 Texas MS67)

 

Maybe we should buy at Heritage and sell at Teletrade?

[onlykeydates4me-migration]

, i'll stick with eBay for the most part for buying and selling. Whta extra you might make on Tele or Heri, you have to give it back to them. Their selling fees are way out there for me. As for buying on those sites, i always factor in the buyer preminums, and in some cases have still overpaid as much as 15% . I need to start scoping out their auctions sooner rtaher then getting caught up in the moment. But of course that means spending more time at this...which my wife tells me that i already do . I tell her, "it's my hobby, would you rather have me in a bar getting loaded everyday?" , she pipes down then usually and says, "at least you are home."

Take care and tahnks for the advice.

[CHABSENTIA]

I have won 5 Morgans on Teletrade. In both cases I have checked hte prices on E Bay. I recently picked one up on Ebay cheaper than I could get it for on Teletrade. All were MS65. The Morgans have heated up on E BAY and Teletrade for some reason.During December I bought an MS65 Morgan for less than I could get it for on both from a Dealer.

 

I see where somebody won a bid for a 1879 S on Teletrade for $358.00 including Buyer Premium. It was in MS63.The three previous bids on Teletrade were for less than $60.00 You can buy a 1879S in MS65 for less than $150.00 in most cases.

 

 

I have seen people on EBAY bid more for a coin when they could buy the same coin as a BIN for less in the same time frame.

 

 

People apparently do not check sources for the value of a coin but aren't aware of what is going on around them at the same time.

[JCM-Houston]

I've seen the same thing on ebay where items get bid 10-25% over the BIN price of a different dealer. I also have bought a couple in the past year from David Lawrence for reasonable prices, at least you get the advantage of some description that seems to be reliable.

[onlykeydates4me-migration]

wow! that was like a back-handed compliment you just gave me. OWWW!

[JCM-Houston]

Not meant to be backhanded, I've bought a few modern commem dollars on ebay, but almost mostly through the buy it now. I do worry about the amount of scamming that goes on there. I actually started selling on ebay in 1996 when we owned a small art gallery and it sure has changed a bunch since then.

[CHABSENTIA]

I am not sure that the comment was directed toward me or you but it does refer to my name.

 

Not meant to be backhanded etc in any way. I was merely a posting of my experiences and not directed toward any one person.

 

I go back and forth between many sources. For example I needed a 1882 S Morgan in MS65. Teletrade hadn't featured any. A Dealer that I use didn't have any. Finally I went to EBAY.There was none being up for auction but there was a BIN. They started at $129.00 and went as high as $175.00 I purchased the one at $129.00.

 

I needed an 1891 date. Couldn't find any at a reasonable price. I had a raw

1891 O and sent it in to NGC. Came back as an MS62. This is 317 points in the Registry and about $200.00. I have sent in a few coins that looked good under a magnifying glass and NGC has returned them in a Body Bag. You just don't know about Dealers in Raw Coins. I recently sent in a raw 1880 S. It came back as a VAM 11 in MS64..I need an 1880S in MS65 but they seem to be all over the place at reasonable prices.

 

The point is that one has to know the values of the coins .With slabbed coins one can determine an average value from several sources.Shipping and handling is going to be pretty much in line in all situations.

 

 

With Teletrade there is a minimum buyers fee of $12.00 and 12%.Up to $100.00 then the fee is $12.00 whether the purchase is $20.00 or $100.00If I win a bid for $100.00 then my cost is $112.00. If I win a bid for $300.00 then my cost is $336.00.THis has to be factored.

 

If I am bidding on a Coin that has an average valuation of $150.00 then I would not bid any more then $130.00 which would be a total of about $146.00.You also have to be aware that Bids are in $5.00 increments up to $100.00 and $10.00 bids after $100.00.

 

You don't bid $300.00 on a coin that is worth less than $100 as I saw recently on Teletrade and Teletrade in most cases gives the last three auction bids that were successful. The last three in this case were $58.00

 

It is obvious here that not only was the coin drastically overbid but yhr bidder was not aware of the ground rules and previuos bids. I would habe liked to be the seller in this case but such a situation is pretty rare. There are probably other cases where you will get less.

 

I recently got a 2005W A.G.E. in MS70 back from NGC. I paid less than $100.00 for it a few years ago. Numismedia here says it is worth $275.00. Is there any way I can guarantee a Price on Teletrade. I can use a Starting bid on EBay or a Reserve Price. Doesn't mean I will sell it for that Price especially if ther is a BIN for a 2005W PF 70 1/10 Ounce for less.

 

The point is that one has to know the ground rules for bidding in any environment as well as the values of the items they wish to acquire so that they can take advantage of the best situation.

 

There may be cases where the Buyer needs to pay a small premium such as a case where there are no auctions for that particular coin that you have determined is worth $150.00 but a Seller has a BIN for it at $160.00

 

The small premium then becomes a judgement call of wheter one wants to pay a small premium or wait for a better chance.

[World Colonial]

I have not bought anything on Teletrade in a long time but frankly, I would question whether there is really anything out there that cannot be bought for less somewhere else because of the buyer's fee. Most of the coins sold on Teletrade are common.

 

Since I only collect World coins, I have not bought anything there recently because they do not have anything that I collect. But I have actually found the prices cheaper than elsewhere such as Ebay, at least at the time. I presume that this is because the competition was weak as others buyers might not have known the coins were even there.

[CHABSENTIA]

You are correct. I have to use several sources on the Morgans which is my area now. I needed a 1882S MS-65 and Teletrade had none. I checked with a few dealers and they had none. Even some of the ads in Coin world only had one in MS66 or MS63 but no MS65 and this is a common date.

 

Finally found a BIN on Ebay but not one up for auction and for some reason the Morgans are really being bid up.Guess its the Fad area now. Another htat seems to be lacking on Teletrade lately is the 1889.I have one for that slot but just check. I also have a 1894 S in XF45 for the 1894 Slot bu there have not been any listed on Teletrade or EBay for some time .There are raw coins in this date but not graded.

 

I sent in an 1891 0 toNGC nad it came back as MS62. I also sent in a raw one for the 1897 year and it is coming back as MS 63 PL.

 

Some dates are there but some aren't and about 90% of the raw coins I picked up on EBAY early last year are alright but some have been cleaned and you can't tell from the pictures.

 

I am getting a 1880S MS64 Vam11 back and a 1899 0 MS65 that I did send in raw. I am sending in an 1890 among others and this will finish my 1890s except for the 1893 and 1895. A graded 1893 XF was offered on E Bay the other day but in the last few minutes it got to above true valuation. There are none offered on Teletrade lately. I may have to pay a small premium eventually but I will take my time.

 

 

The 12% Buyers Premium on Teletrade is always a factor.

[jackson64]

I have sold on Teletrade..and they do let the seller "shill" bid ...sort of...as a seller you are allowed one bid, this acts as a sort of reserve...if you win your own item, you must pay a small % and you can re-list it...what this does though is set a trend for what these coins are worth that is inflated...

 

if another seller wants to sell a similar coin of the same date/grade..he will often list his item with a start bid at what the last one "appeared" to sell at...this whole thing creates a false impression that a particular coin is worth/selling at a certain level when it is not true

 

I know this info may anger some...but I hope it helps save you some money also.....

 

I have found ebay BIN prices to be at least 25% over the going rate..sometimes more than double..it is cheap for sellers on the bay to load their store up with overpriced items--cheaper than selling in a listing---and if they sell even 1 overpriced bin item they can cover the costs for their entire ebay store for several months..

 

my advice...get a greysheet and negotiate...all coins in listings (not auctions) are negotiable..

 

Even with David Lawrence I have pointed out a coin looked overgraded and had been in his inventory for 6 months...I offered 60% of what he was asking..he turned around and offered it at 75%..I took it..

[CHABSENTIA]

I agree. I always look at three sources and take the lowest one. I picked up the 1882S MS65 as a BIN for $129.00. Numismedia lists it for $150.00. I could have got it at $125.00 from a dealer a few months ago.

 

There weren't any others for auctions anyplace. I probably could have asked a few dollars less.On the other hand, there are all kinds of 1880S MS65 all over the place.I would guess this would especially be a good one for submitting a bid for a BIN.

 

I have see the 1880S go for around $127.00 and up the last few times on EBAY auctions.

 

Since you have sold on Teletrade I do have a question. I have never seen a starting bid on Teletrade. I usually get on after a few hours after it has started but there is no deal like on EBAY where it is actually on the site for a "starting bid".

 

I notice that there are forms you can download on the Teletrade site for Coins on Consignment.Is there place on the form where you can specify one?

 

 

If a Bid is won at $100.00 then the actual Price is $112.00. I take it Teletrade gets the $12.00. If you are selling coins then I wouild guess there is a Sellers Premium.So if the coin sells for $100.00 whixh is actually $112.00 to the Buyer then the Seller gets $100.00 minus what percentage.?

 

 

Another question I had was regarding the Seller.If you have Coins that sold for say $2000.00 after any percentage then does Teletrade send you a check for $2000.00?

 

What if out of some those coins the Buyer returns them. So I would guess there is some kind of time frame.

 

Thanks

 

 

[CHABSENTIA]

Some people must not look at this.A few months ago I was looking at the Morgans. The last win for this Morgan in MS63 including Buyers Premium was $358.00 The previous three before that were less than $60.00 which is about the value.